Bitcoin Drops by Over $1k, Pulling the Rest of the Market Down. However, a quick glance at the crypto markets reveals that the trading environment is a bearish one after Bitcoin dropped from $19,300 levels to $17,800 in a span of 24 hours.
XRP is highly correlated to Bitcoin and the drop by BTC has also resulted in the remittance coin falling from $0.60 levels to $0.51.
Spark Tokens (FLR) Are Enough to Keep Holding XRP. From a fundamentals point of view, XRP’s price action not living up to expectations is not necessarily a bad thing.
XRP traders and investors who will participate in the Flare Networks snapshot will have the Spark Token (FLR) airdrop to look forward to in 2021. The ‘free’ tokens are enough reason to be bullish on XRP and its future in DeFi as a result of the implementation of the roadmap by the team at Flare Networks.
XRP Risks Losing the $0.50 Support Zone
XRP has once again found substantial support at the $0.50 price area but a bearish Bitcoin might result in this area being lost before the Flare Networks snapshot. To get a feel as to what the short-term future holds for XRP, the following daily XRP/USDT chart shall be used.
From the chart above, the following can be observed.
- XRP’s daily MACD is indicating an intense bearish environment
- The daily MFI and RSI also confirm an ongoing correction
- Trade volume has reduced and is in the red
- XRP’s price is overly extended past the three moving averages: 50-day, 100-day and 200-day
- XRP’s parabolic run might have come to an end
- The 50-day MA provides support around the $0.38 price area
- Other areas of short term support for XRP include $0.48, $0.45, $0.42 and $0.40
- XRP has lost the $0.58 – $0.60 support area
- This is as a result of the general bearish crypto environment with Bitcoin dropping by over $1k
- XRP risks losing the $0.50 support area ahead of the Flare Networks snapshot
- If $0.50 is lost, XRP could be on a path towards $0.38 where the 50-day MA is
The remittance coin of XRP is looking at a bleak future in terms of price ahead of the Flare Networks snapshot on the 12th of this month. The hype and excitement surrounding the event had caused a lot of traders and investors to look forward to XRP breaking $0.80 and perhaps $1.
This was primarily due to the fact that XRP had formed a symmetrical triangle that hinted at a bullish scenario as the Flare Networks snapshot drew nearer.